Decentraland (MANA) Price Climbs as Metaverse Resurges, Where to Next?
After nearly a month in decline, Decentraland (MANA) price has made a resurgence in the last seven trading days. On-chain data shows that an accumulation frenzy from large investors has been pivotal. Can Apple’s recent foray into the metaverse lead to a more bullish MANA price prediction?
Apple has made a long-anticipated foray into the metaverse by listing an Axie Infinity game on its native AppStore. Prominent GameFi tokens like AXS, MANA, and SAND, all jumped as markets reacted to the news.
Decentraland Whales Are Positioning For Potential Gains from the Apple Listing
With more than 1.8 billion active Apple devices worldwide, blockchain-native games could now penetrate a much broader market.
On-chain data reveals that Decentraland whales are already accumulating MANA to front-run the potential gains.
The chart below shows that Dencetraland whales holding 10 million to 100 million MANA have added 21 million tokens between May 11 and May 17.
The 21 million newly-added coins are worth approximately $10 million at current market value. This week-long accumulation frenzy is even more remarkable, considering that the whales began May 2023 with a frantic sell-off.
If Apple goes on a spree of listing blockchain games, the whales and other strategic retail investors will likely pile on more buy pressure. And this could ultimately validate the bullish Decentraland price prediction.
MANA is Still Undervalued
Despite the positive news making rounds, on-chain data suggest that the Decentraland native token is still undervalued at current prices. As seen below, MANA NVT Ratio has dropped by 74% from 893.68 to 230.79 between May 13 and May 17.
Typically, strategic investors use the Network Value to Transaction Volume (NVT) ratio to assess the relationship between a cryptocurrency network’s market capitalization and the level of underlying transactional activity.
When the NVT ratio drops considerably, as observed above, the asset is undervalued and could be due for more price gains.
In summary, the increased whale activity and low NVT ratio could attract investors looking to enter the MANA market at a critical positive turning point.
MANA Price Prediction: Race to $0.75
According to IntoTheBlock’s In/Out of Money Around Price (IOMAP) data, MANA will likely rally above the $0.75 mark.
For the bulls to be confident of the bullish Decentraland price prediction, MANA must first clear the initial resistance at $0.60. But selling pressure from 1,570 investors that bought 132 million MANA at the maximum of $0.60 may prevent it.
If the positive MANA price prediction plays out as expected, the bulls can garner enough momentum to push for $0.75.
Still, the bears could invalidate the positive outlook if MANA retraces unexpectedly below $0.46. Although, as seen above, the bullish support from 2,400 addresses that had bought 106 million coins for a minimum price of $0.46 will likely prevent the drop.
If that support level cannot hold, the bullish Decentraland price prediction could be effectively invalidated and trigger a drop toward $0.41.
Disclaimer
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